prepare the adjusting entry for April 30

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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prepare the adjusting entry for April 30
On April 1, 2016, Mar Cruz, a lawyer, opened his own legal practice. The business adjusts and closes its
accounts at the end of each month. The following trial balance was prepared after one month of
operations.
Unadjusted Trial Balance
Dobit
Account Title and Explanation
Crodit
Cash
10,060
Accounts Receivable
Prepaid Expenses
Supplies
Office Equipment
Accum. Deprn-Off Eqpt
Notes Payable
Interest Payable
Unearned Service Revenue
Cruz, Capital
7,800
1,460
26,400
16,000
15,020
20,000
Cruz, Withdrawal
3000
Service Revenue
1,580
Supplies Expense
Salaries Expense
2,680
1,200
52,600
52,600
More information:
No interest has yet been paid on the note payable. Accrued interest at April 30 amounts to PHP200.
Salaries earned by the office staff but not yet recorded or paid anmounted to PHP970 by April 30.
Many clients are asked to make advance payment for legal services to be rendered in future months.
These advances are credited to the Unearned Service Revenue account once received. During April,
PHP5.020 of these advances were earned by the business.
Office supplies on hand by April 30 amounted to PHP400.
The office equipment was purchased on April 1 and is being depreciated over an estimated useful life
of 10 years with no residual value.
Transcribed Image Text:On April 1, 2016, Mar Cruz, a lawyer, opened his own legal practice. The business adjusts and closes its accounts at the end of each month. The following trial balance was prepared after one month of operations. Unadjusted Trial Balance Dobit Account Title and Explanation Crodit Cash 10,060 Accounts Receivable Prepaid Expenses Supplies Office Equipment Accum. Deprn-Off Eqpt Notes Payable Interest Payable Unearned Service Revenue Cruz, Capital 7,800 1,460 26,400 16,000 15,020 20,000 Cruz, Withdrawal 3000 Service Revenue 1,580 Supplies Expense Salaries Expense 2,680 1,200 52,600 52,600 More information: No interest has yet been paid on the note payable. Accrued interest at April 30 amounts to PHP200. Salaries earned by the office staff but not yet recorded or paid anmounted to PHP970 by April 30. Many clients are asked to make advance payment for legal services to be rendered in future months. These advances are credited to the Unearned Service Revenue account once received. During April, PHP5.020 of these advances were earned by the business. Office supplies on hand by April 30 amounted to PHP400. The office equipment was purchased on April 1 and is being depreciated over an estimated useful life of 10 years with no residual value.
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